Monday, October 12, 2015

Has Oil Finally Found a Bottom?

Over the past 5 trading days post the Friday morning October 2nd 8:30 jobs report, investors with exposure to the energy sector have been treated to a major rally.  As seen in the graph below, the Energy Select Sector SPDR ETF (XLE) has risen 14.5% from $60.62 at the open on Friday to the closing price of $69.41 on Thursday. 

Compared to the S&P 500 (SPX) (SPY) aggregate index, which has posted a 4.5% gain over the same period, the out performance of the energy sector is substantial, and worth taking a closer look at to understand what is driving the significant divergence in the returns before diving into just any energy stock at this point in time. 

Read more>

No comments:

Post a Comment